Slide 1: Investor Presentation December 2024
Investor Presentation December 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presentation constitute “forward-looking statements” about Sunoco LP (“SUN”, “we”, “our,” and “us”) that involve risks, uncertainties and assumptions, including, without limitation, the expected future performance of SUN (including expected r
Slide 3: North America's Largest Independent Fuel Distributor and Leading Operator of Critical Energy Infrastructure
North America’s Largest Independent Fuel Distributor and Leading Operator of Critical Energy Infrastructure Ireland Netherlands Puerto Rico Hawaii ~9 billion ~7,400 ~800 124 4 ~14,000 Gallons Branded Real Estate Terminals Transmix Miles of Distributed Locations Assets Facilities Pipeline 3
Slide 4: Compelling Long-Term Investment
Compelling Long-Term Investment Strong Balance Secure and Growing Accretive Growth Sheet Distribution • Positive credit trajectory resulted • Only AMZI constituent to grow • One of only six AMZI in multiple credit rating upgrades DCF(2) per Common Unit for the constituents to not reduce since 2018 -
Slide 5: Strong Financial Foundation
Strong Financial Foundation Sunoco LP (NYSE:SUN) Balanced Senior Note Maturity Profile • Market capitalization: ~$8 billion(1) 2,000 Total outstanding: ~$7 billion • Enterprise value: ~$15 billion(1) WAVG tenor: ~5 years 1,600 WAVG interest rate: ~6% • Revenue: ~$25 billion(2) • 2025E Adjusted EBITD
Slide 6: Blueprint for Continued Growth
Blueprint for Continued Growth Diverse Opportunity Set… ...With Proven Evaluation Criteria Acquisitions Cash Flow Stability Continue to target fuel distribution and critical energy infrastructure Opportunities for Growth Fuel Distribution Organic Growth Long-term supply contracts and opportunities t
Slide 7: Delivered Significant Returns and Positioned for Future Growth
Delivered Significant Returns and Positioned for Future Growth In 2017, SUN announced a new strategic Since 2017, SUN has materially grown DCF(2) direction focusing on fuel distribution and per Common Unit, generating cash flow for critical energy infrastructure distribution growth and reinvestment
Slide 8: Diverse and Stable Business Segments
Diverse and Stable Business Segments Pipeline Systems Terminals Fuel Distribution • Wholesale margins have normalized higher • Higher breakeven margins expected to remain • Scale and proprietary brand enable higher margin capture • Portfolio optimized for stability and upside 8
Slide 9: Wholesale Margins Have Normalized Higher
Wholesale Margins Have Normalized Higher Evolution of Wholesale Margins(1) Key Drivers • Higher wholesale margins have been driven by varying +57% rates of volume recovery post-COVID combined with inflation and higher interest +18% rates +8% • Price volatility and geopolitical uncertainty are constr
Slide 10: Higher Breakeven Margins Expected to Remain
Higher Breakeven Margins Expected to Remain Industry Dynamics Support Higher ...With Efficient Operators Benefiting the Breakeven Margins… Most in a Highly Fragmented Sector Merchandise gross profit is under pressure • Declining consumer traffic and softening unit volume in Illustrative Example sele
Slide 11: Scale and Proprietary Brand Enable Higher Margin Capture
Scale and Proprietary Brand Enable Higher Margin Capture North America’s Largest Independent Fuel Distributor • Scale increases purchasing power and lowers cost of goods sold Significant Scale • Sophisticated supply strategy (e.g., blending and cargo operations) provides optionality and flexibility,
Slide 12: Portfolio Optimized for Stability and Upside
Portfolio Optimized for Stability and Upside Foundation of Highly Ratable Income Streams • 7-Eleven take-or-pay fuel supply agreement ensures long-term gross profit stability Stability • 5- to 10-year fuel supply agreements with greater than 95% retention rates generate ratable volumes • Pass-throug
Slide 13: Diverse and Stable Business Segments
Diverse and Stable Business Segments Fuel Distribution Pipeline Systems Terminals • Terminals will remain high-value, critical infrastructure for decades • Terminal portfolio delivers long-term income stability • Vertical integration maximizes the value of terminals 13
Slide 14: Terminals Will Remain High-Value, Critical Infrastructure for Decades
Terminals Will Remain High-Value, Critical Infrastructure for Decades Terminal Infrastructure Total U.S. Storage Capacity Remains Essential Has Plateaued(1) • Capital and regulatory challenges have made new terminal construction projects infrequent 1,500 • As total storage capacity declines, remaini
Slide 15: Terminal Portfolio Delivers Long-Term Income Stability
Terminal Portfolio Delivers Long-Term Income Stability • Strategically located in key liquid product markets Storage • Storage terminals are highly utilized with over 95% of tank lease capacity under contract ~80% of segment profit • SUN’s fuel distribution business backstops storage leases • Suppor
Slide 16: Vertical Integration Maximizes the Value of Terminals
Vertical Integration Maximizes the Value of Terminals Increases Utilization Improves Efficiency • SUN’s fuel distribution business • Higher throughput volumes and tank increases utilization of owned utilization decrease fixed cost per terminals and provides a backstop if volume 1 2 customers vacate
Slide 17: Diverse and Stable Business Segments
Diverse and Stable Business Segments Terminals Fuel Distribution Pipeline Systems • Pipeline systems will remain high-value, critical infrastructure for decades • Pipeline systems provide long-term income stability • Permian Basin joint venture with Energy Transfer • Mid-continent refined products s
Slide 18: Pipeline Systems Will Remain High-Value, Critical Infrastructure for Decades
Pipeline Systems Will Remain High-Value, Critical Infrastructure for Decades Total U.S. Crude and Product Pipeline Miles(1) 250 200 Thousands of Miles 150 100 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 • Large pipeline projects are becoming more • Direct integration with terminals i
Slide 19: Pipeline Systems Provide Long-Term Income Stability
Pipeline Systems Provide Long-Term Income Stability Permian Basin Joint Venture with Energy Transfer (ET) • Combination of SUN’s and ET’s pipelines creates expansive system that spans the Midland and Delaware Basins NM • Multiple connections to long-haul pipelines provide increased optionality for c
Slide 20: Pipeline Systems Provide Long-Term Income Stability
Pipeline Systems Provide Long-Term Income Stability Southwest Crude and Refined Products System • Multiple SUN terminals and third-party connection points in key markets across Texas, New Mexico, Colorado, Oklahoma, CO and Mexico OK • Domestic crude supply and refined product delivery pipelines NM a
Slide 21: Strong 2025 Business Outlook and Guidance
Strong 2025 Business Outlook and Guidance 2,000 $1,925(3) Key Drivers of +25% AEBITDA(1) Growth: • Continued strong $ in Millions $1,540(2) performance from legacy Adjusted 1,500 business $1.90 - $1.95 billion • Full-year of NuStar EBITDA(1) acquisition plus synergies 1,000 • Return on capital 2024E